EchoStar's stock impacted by SpaceX deal expansion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2025
0mins
Source: Investing.com
EchoStar Corp's stock has fallen 5.01% as it crosses below the 5-day SMA amid broader market weakness, with the Nasdaq-100 down 0.53% and the S&P 500 down 0.32%.
The decline in EchoStar's stock is influenced by the recent expansion of its deal with SpaceX, which has increased to a total value of $20 billion, including up to $11 billion in SpaceX stock. This development reflects strong market confidence in SpaceX's future potential but has also led to a mixed sentiment around EchoStar's stock performance, particularly as investors react to the broader market conditions.
Despite the current downturn, the long-term implications of the deal with SpaceX could provide future growth opportunities for EchoStar, especially as the space industry gains traction and investor interest continues to rise.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SATS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on SATS
Wall Street analysts forecast SATS stock price to fall
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 131.070
Low
110.00
Averages
127.00
High
158.00
Current: 131.070
Low
110.00
Averages
127.00
High
158.00
About SATS
EchoStar Corporation is a holding company. The Company provides technology, networking services, television entertainment and connectivity, offering consumer, enterprise, operator and government solutions worldwide under its EchoStar, Boost Mobile, Sling TV, DISH TV, Hughes, HughesNet, HughesON, and JUPITER brands. The Company’s segments include Pay-TV, Wireless, Broadband and Satellite Services, and Other. Pay-TV segment offers services under the DISH brand and the SLING brand. Wireless segment offers nationwide wireless services to subscribers primarily under its Boost Mobile and Gen Mobile brands. Broadband and Satellite Services segment provides broadband network technologies, managed services, equipment, hardware, satellite services and communications solutions to government and enterprise customers. Other segment primarily consists of its legacy 5G Network and 5G Network deployment operations that are not utilized in the Wireless segment’s Hybrid MNO business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Energy Stocks Decline as Nextpower Acquires Battery Firm
- Energy Sector Decline: Energy stocks fell for the fourth consecutive day after President Trump indicated a potential deal to end the U.S.-Iran conflict, with OneOK leading the S&P 500 energy sector down over 3%, reflecting market concerns about the industry's outlook.
- Nextpower Acquisition: Nextpower's stock surged 13% following its announcement of acquiring battery storage company Prevalon Energy for approximately $365 million, while also raising its full-year revenue guidance, indicating its strategic expansion in the renewable energy sector.
- Dell Technologies Surge: Dell Technologies' shares jumped 29% after raising its full-year guidance, projecting adjusted earnings of $17.90 per share and revenue between $165 billion and $169 billion, significantly exceeding analyst expectations, showcasing strong market demand recovery.
- American Eagle's Poor Performance: American Eagle Outfitters' shares dropped 13% as comparable sales at its American Eagle banner fell 2% in Q1, with second-quarter guidance disappointing analysts, highlighting the sales pressure and intensified competition it faces.
See More
Autodesk Shares Plunge 26.2% Year-to-Date Amid S&P 500 Decline
- Poor Stock Performance: Autodesk's stock is down 9.3% today and has fallen 26.2% year-to-date, indicating a weak market position that could undermine investor confidence and future financing capabilities.
- Market Dynamics Analysis: As the worst-performing component in the S&P 500, Autodesk's struggles reflect challenges in a competitive industry, potentially leading to downward revisions in market growth expectations.
- Other Company Movements: In contrast to Autodesk, EchoStar's stock is down 7.3% today, while NetApp has surged 28.2%, highlighting varied market reactions that could influence investor asset allocation decisions.
- Investor Focus Shift: With Autodesk's ongoing decline, investors may reassess its strategic positioning in the tech sector and future growth trajectory, which could impact its competitive standing in the market.
See More
Dell Technologies Shares Surge 37% After Raising Full-Year Guidance
- Dell Technologies Surge: Dell Technologies' stock surged nearly 37% after raising its full-year guidance, projecting adjusted earnings of $17.90 per share and revenue between $165 billion and $169 billion, significantly exceeding analysts' expectations of $13.09 per share and $142.5 billion in revenue, indicating robust market demand and profitability.
- Computer Sector Rally: Following Dell's strong performance, shares of other computer hardware and services companies also rose, with Hewlett Packard Enterprise up over 17%, Super Micro Computer rising nearly 10%, and HP increasing almost 7%, reflecting optimistic sentiment towards the computer industry's outlook.
- American Eagle Outfitters Decline: Shares of American Eagle Outfitters dropped about 11% as comparable sales at its American Eagle banner fell 2% in Q1, missing analysts' expectations of 3.1% growth, while disappointing second-quarter operating income guidance further highlights challenges in the retail sector.
- Space Stocks Decline: Shares of space-related companies fell after a Blue Origin rocket exploded during a ground test in Florida, with AST SpaceMobile tumbling nearly 15%, EchoStar down 4.5%, and Rocket Lab down 5.5%, reflecting investor concerns over risks in the space industry.
See More
Investor Sentiments on Joby Aviation
- Investment Outlook: Joby Aviation is viewed as a promising investment, although market sentiment remains cautious; analysts suggest that the upcoming investment wave in the drone sector could benefit Joby significantly.
- Competitive Landscape: In the drone industry, analysts indicate that other companies may present more attractive investment opportunities, especially with the presidential election potentially driving further growth in the sector.
- Industry Dynamics: Despite Joby Aviation's strong stock performance, analysts express concerns about its profitability, noting that the company is still operating at a loss, which necessitates careful evaluation of its long-term value by investors.
- Investor Confidence Boost: As interest in drone technology rises, Joby Aviation's market visibility improves, leading analysts to adopt an optimistic stance on its future investment prospects, which may attract more investor attention.
See More
EU Allocates Mobile Satellite Spectrum to Non-European Firms
- New Spectrum Allocation: The European Commission announced that next year, non-European satellite operators like Elon Musk's Starlink and Amazon can bid for mobile satellite spectrum, but most frequencies will be reserved for European businesses, aiming to encourage new market entrants.
- Tech Sovereignty Push: This move reflects the EU's desire to enhance its technological sovereignty by supporting local tech players in response to China's technological rise and the dominance of U.S. tech giants, particularly amid escalating transatlantic tensions.
- Frequency Band Advantages: The 2 GHz frequency band is ideal for direct services, allowing users to bypass telecom providers, providing critical communication capabilities, and ensuring high-speed internet access in remote areas, thereby enhancing the resilience of the EU's communication networks.
- Government Use Assurance: The new allocation system reserves one-third of the mobile satellite spectrum for governmental use, including security and military applications, to be provided by an EU operator that will integrate with the EU's IRIS2 multi-orbit satellite array, ensuring the stability of critical communication services.
See More
EU Leaders Divided on Curbing Big Tech Access
- Tech Sovereignty Debate: EU leaders are divided on how to limit access for Big Tech, with some advocating for preferential treatment of local firms to enhance tech sovereignty, while others worry about potential backlash from Washington affecting transatlantic relations.
- Cloud Market Impact: The upcoming decision on cloud tenders set for June 3 is expected to temper the influence of U.S. firms like Amazon, Google, and Microsoft, which collectively hold a 63% share of the global cloud market, highlighting the competitive pressures facing the EU in digital services.
- Investment Gap Issue: According to Alba Ribera Martínez, editor-in-chief of the Stanford Computational Antitrust project, Europe faces a €1 trillion investment gap in cloud infrastructure, underscoring the region's vulnerabilities in the digital services landscape.
- Spectrum Allocation Reform: The EU will unveil a revised allocation process for mobile satellite spectrum on Wednesday, aimed at providing opportunities for European entrants like OVHCloud and Deutsche Telekom while limiting Starlink's expansion in Europe, reflecting a commitment to support local businesses.
See More
Energy Stocks Decline as Nextpower Acquires Battery Firm
- Energy Sector Decline: Energy stocks fell for the fourth consecutive day after President Trump indicated a potential deal to end the U.S.-Iran conflict, with OneOK leading the S&P 500 energy sector down over 3%, reflecting market concerns about the industry's outlook.
- Nextpower Acquisition: Nextpower's stock surged 13% following its announcement of acquiring battery storage company Prevalon Energy for approximately $365 million, while also raising its full-year revenue guidance, indicating its strategic expansion in the renewable energy sector.
- Dell Technologies Surge: Dell Technologies' shares jumped 29% after raising its full-year guidance, projecting adjusted earnings of $17.90 per share and revenue between $165 billion and $169 billion, significantly exceeding analyst expectations, showcasing strong market demand recovery.
- American Eagle's Poor Performance: American Eagle Outfitters' shares dropped 13% as comparable sales at its American Eagle banner fell 2% in Q1, with second-quarter guidance disappointing analysts, highlighting the sales pressure and intensified competition it faces.
See More
Autodesk Shares Plunge 26.2% Year-to-Date Amid S&P 500 Decline
- Poor Stock Performance: Autodesk's stock is down 9.3% today and has fallen 26.2% year-to-date, indicating a weak market position that could undermine investor confidence and future financing capabilities.
- Market Dynamics Analysis: As the worst-performing component in the S&P 500, Autodesk's struggles reflect challenges in a competitive industry, potentially leading to downward revisions in market growth expectations.
- Other Company Movements: In contrast to Autodesk, EchoStar's stock is down 7.3% today, while NetApp has surged 28.2%, highlighting varied market reactions that could influence investor asset allocation decisions.
- Investor Focus Shift: With Autodesk's ongoing decline, investors may reassess its strategic positioning in the tech sector and future growth trajectory, which could impact its competitive standing in the market.
See More
Dell Technologies Shares Surge 37% After Raising Full-Year Guidance
- Dell Technologies Surge: Dell Technologies' stock surged nearly 37% after raising its full-year guidance, projecting adjusted earnings of $17.90 per share and revenue between $165 billion and $169 billion, significantly exceeding analysts' expectations of $13.09 per share and $142.5 billion in revenue, indicating robust market demand and profitability.
- Computer Sector Rally: Following Dell's strong performance, shares of other computer hardware and services companies also rose, with Hewlett Packard Enterprise up over 17%, Super Micro Computer rising nearly 10%, and HP increasing almost 7%, reflecting optimistic sentiment towards the computer industry's outlook.
- American Eagle Outfitters Decline: Shares of American Eagle Outfitters dropped about 11% as comparable sales at its American Eagle banner fell 2% in Q1, missing analysts' expectations of 3.1% growth, while disappointing second-quarter operating income guidance further highlights challenges in the retail sector.
- Space Stocks Decline: Shares of space-related companies fell after a Blue Origin rocket exploded during a ground test in Florida, with AST SpaceMobile tumbling nearly 15%, EchoStar down 4.5%, and Rocket Lab down 5.5%, reflecting investor concerns over risks in the space industry.
See More
Investor Sentiments on Joby Aviation
- Investment Outlook: Joby Aviation is viewed as a promising investment, although market sentiment remains cautious; analysts suggest that the upcoming investment wave in the drone sector could benefit Joby significantly.
- Competitive Landscape: In the drone industry, analysts indicate that other companies may present more attractive investment opportunities, especially with the presidential election potentially driving further growth in the sector.
- Industry Dynamics: Despite Joby Aviation's strong stock performance, analysts express concerns about its profitability, noting that the company is still operating at a loss, which necessitates careful evaluation of its long-term value by investors.
- Investor Confidence Boost: As interest in drone technology rises, Joby Aviation's market visibility improves, leading analysts to adopt an optimistic stance on its future investment prospects, which may attract more investor attention.
See More
EU Allocates Mobile Satellite Spectrum to Non-European Firms
- New Spectrum Allocation: The European Commission announced that next year, non-European satellite operators like Elon Musk's Starlink and Amazon can bid for mobile satellite spectrum, but most frequencies will be reserved for European businesses, aiming to encourage new market entrants.
- Tech Sovereignty Push: This move reflects the EU's desire to enhance its technological sovereignty by supporting local tech players in response to China's technological rise and the dominance of U.S. tech giants, particularly amid escalating transatlantic tensions.
- Frequency Band Advantages: The 2 GHz frequency band is ideal for direct services, allowing users to bypass telecom providers, providing critical communication capabilities, and ensuring high-speed internet access in remote areas, thereby enhancing the resilience of the EU's communication networks.
- Government Use Assurance: The new allocation system reserves one-third of the mobile satellite spectrum for governmental use, including security and military applications, to be provided by an EU operator that will integrate with the EU's IRIS2 multi-orbit satellite array, ensuring the stability of critical communication services.
See More
EU Leaders Divided on Curbing Big Tech Access
- Tech Sovereignty Debate: EU leaders are divided on how to limit access for Big Tech, with some advocating for preferential treatment of local firms to enhance tech sovereignty, while others worry about potential backlash from Washington affecting transatlantic relations.
- Cloud Market Impact: The upcoming decision on cloud tenders set for June 3 is expected to temper the influence of U.S. firms like Amazon, Google, and Microsoft, which collectively hold a 63% share of the global cloud market, highlighting the competitive pressures facing the EU in digital services.
- Investment Gap Issue: According to Alba Ribera Martínez, editor-in-chief of the Stanford Computational Antitrust project, Europe faces a €1 trillion investment gap in cloud infrastructure, underscoring the region's vulnerabilities in the digital services landscape.
- Spectrum Allocation Reform: The EU will unveil a revised allocation process for mobile satellite spectrum on Wednesday, aimed at providing opportunities for European entrants like OVHCloud and Deutsche Telekom while limiting Starlink's expansion in Europe, reflecting a commitment to support local businesses.
See More
